What Can We Conclude If the Global Test of Regression

question 109

Multiple Choice

What can we conclude if the global test of regression rejects the null hypothesis?

• A) Strong correlations exist among the variables.
• B) No relationship exists between the dependent variable and any of the independent variables.
• C) At least one of the net regression coefficients is not equal to zero.
• D) Good predictions are not possible.

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Definitions:

Return On Total Assets

A financial metric that measures the efficiency of a company in generating profits from its total assets.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a finance charge on the income statement.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Return On Equity

This is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how much profit a company generates with the money shareholders have invested.